23 March 2012 10:53 [Source: ICIS news]
LONDON (ICIS)--The European methanol contract price for the second quarter has been confirmed up by €20/tonne ($26) at €340/tonne, after widespread market acceptance was reached on Friday morning.
An initial agreement was made on 21 March between a supplier and a buyer, after which an increasing number of players also agreed to the figure.
Despite accepting the price, many buyers believe it to be on the high side.
“It’s a little high. An increase was likely, but this is a little too much,” said one buyer.
Anther buyer, who had previously been targeting a rollover, said: “Don’t forget some suppliers were asking for €350–360/tonne. €340/tonne takes us in line with the rest of the world. The increase is not so large. I just hope demand in Q2 carries on at a good level, as in Q1.”
“It’s a fair compromise that reflects the actual market situation. It looked reasonable for all,” a supplier said earlier.
The European methanol contract price is settled on an FOB (free on board) Rotterdam basis.
($1 = €0.76)
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